A bank guarantee ties up credit even when never activated, and that hidden cost is rarely tracked. A publication by Nermin Sefić.
A bank guarantee ties up a company's credit line even when never activated, and that hidden cost is rarely tracked systematically.
A bank guarantee ties up a company's credit line even when never activated, and that hidden cost is rarely tracked systematically.
A performance or advance-payment guarantee formally isn't a cost until activated, but ties up part of a company's credit line just as real debt would.
Companies simultaneously holding multiple active guarantees toward different clients often lose track of their total tied-up exposure to banks.
A centralised register of all issued guarantees, with expiry dates and activation conditions, enables an accurate assessment of remaining credit capacity at any moment.
Timely release of expired or no-longer-needed guarantees frees up credit space for new business without requiring additional negotiations with the bank.
Cjelovit tekst i izvor: https://gnk-asg.hr/en/publications/managing-exporter-bonds-and-guarantees/
Autor i urednička odgovornost: Nermin Sefić. Izdavač: GNK ASG d.o.o..
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